INDEPENDENT, ROBUST, COST
EFFECTIVE BOTTOM-UP EQUITY
RESEARCH ON THE MENA
ZONE STOCKS
#1ST AND SOLE INDEPENDENT EQUITY RESEARCH FIRM SPECIALIZED IN
MENA ZONE STOCKS
2014
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AlphaMena is an Independent Research
Provider which offers robust bottom-up
equity research on 117 MENA stocks in
Saudi Arabia, UAE, Tunisia, Morocco,
Egypt, Kuwait, Qatar and Jordan. The
aim is to reach 150 stocks before the end
of 2014.
Currently, AlphaMena has 11 financial
analysts
For so doing, AlphaMena has developed a
proprietary methodology which is applied
to all listed companies. It is based on a
consistent and traceable process. The
breadth of coverage – about 120
companies – across 19 sectors and 8
countries allows AlphaMena to formulate
a coherent view on markets, sectors and
to highlight the best investments in Mena
zone.
AlphaMena Overview
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Highly Cost Effective and
Quality Bottom-up Equity
Research on the MENA zone
stocks
AlphaMena is powered by AlphaValue’s(1)
disciplined analysis methodology and
distributed via emails and on a web
platform with powerful tools. AlphaMena
applies a homogeneous and in-depth
analytical process to produce its
fundamental recommendations. This solid
analytical chain generates consistent
data for robust benchmarking.
Researchers are accessible on our user-
friendly interactive web platform via a
subscription basis (Commission Sharing
Agreement available).
(1) AlphaValue is Europe’s leading online provider of independent
equity research on the top 470 pan-European market caps
AlphaMena Overview
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Independence of opinions, synthetic reports, ratings based upon
value, risk & governance, powerful screeners
ALPHA
CAPTURE COMPREHENSIVE
ANALYSIS
HOMOGENEOUS
PROCESS
TIME SAVING
Equity
Research
based on
genuine
fundamentals
Analysis
Single valuation
process for
robust
decision-
making
Extract stocks
list with our
intuitive data
crunching tools
4 BENEFITS
Systematic
Alpha
Capture with
a target price
updated daily
Stocks rated according to risk,
value and governance criteria: our
well-structured methodology
offers independent, robust,
dynamic, and demonstrable
ratings in total transparency and
traceability.
Fast & Powerful screeners: In just
one place, generate, monitor,
validate and save investment
ideas on MENA equities.
Independence: ALPHAMENA is
the 1st and sole independent
equity research firm specialized
in MENA zone stocks.
Synthetic Individual Stock
Reports: Avoid the noise of the
market; go to the essential of an
investment case. What is the
business model of the firm?
How does it generate its cash?
Is it dear or cheap?
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Helping Clients Capture Alpha
Valuation templates are adjusted to
industrial profiles. Even intrinsic metrics
can move based upon daily changes in
the WACC or share price movements of
listed subsidiaries covered.
AlphaMena’s recommendations are
continuously updated providing the most
recent information, helping you keeps up
in a fast paced environment.
Peers metrics are synchronized to daily
changing market conditions and to our
analysts’ changes in estimates.
DYNAMIC VALUATION SYSTEM
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The morning « Research
Update »
Process Business Model:
AlphaMena research services are exclusively available to subscribers via Internet
connection.
Institutional customers and Companies receive a daily email named “AlphaMena” ,
with multiple updates on companies and have access to a broad database that
refine their judgment thanks to powerful and intuitive tools.
ALPHAMENA PUSH RESEARCH
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FINANCIAL CYCLICAL SEMI-CYCLICAL
Property Paper & Packaging Transport
Other Insurance Metals & Mine Capital Goods
Insurance Chemicals Building Prod. & Materials
Banks Building & Construction
GROWTH DEFENSIVES CONSUMER CYCLICAL
Computer Services Telecoms Non-Food Retail
Pharma Autos
Food Retail
Food & Beverages
AlphaMena’s Fundamentals
Sectors
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We hold the view that an analyst’s job is to start with careful and challenging
reading of all material released by a given corporate, fill up a demanding
spreadsheet focused on tracking down cash generation, use strict and transparent
valuation processes, and then, and only then, put "on paper" the key words
summing up her/his views.
The drive for quality stems from the conviction that consistency across a very large
coverage is a more useful tool for quality equity research than detailed sector
expertise at the expense of the bigger picture.
Demanding Production Process
Consistent Macro Inputs
Standardized Accounting
Grids
ro Inputs
Consistent Macro Inputs
Uniform Valuation templates
Real -Time Valuation
Robust Comparisons
Traceability
Idea Generation Driven
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AlphaMena is not interested in its subscribers' actual investment decisions.
Its services fall neatly into the global regulatory movement which aims to split execution
from advisory services in financial markets.
We meet the need of users of research to get more for their research dollar, thereby
addressing their requirements for tighter and clearer research budgets.
Business Model
Customer Profile
- Equity Fund Manager
- Private Bankers
- Buy Side Analysts
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117 stocks aiming for 150 before the end on 2014
Country Nb. Of Stocks covered…
… at short term
Morocco 32 35
KSA 12 25
Egypt 11 15
Kuwait 4 7
UAE 6 12
Tunisia 46 48
Jordan 4 5
Qatar 2 3
Total 117 150
AlphaMena Coverage
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Each company is scanned in depth, through a structured process
In a nutshell A page which brings together the key data to support the recommendation stance
Businesses & Trends The challenge is to describe businesses and their trends in a limited number of words and only focus on those issues that impact cash flow generation in a material way. It is a demanding exercise for the analyst as the right balance is hard to find between proper descriptions in terms that are understandable on the one hand and, effective, to the point, comments about trends on the other.
Money making The purpose of this section is to identify key factors to future profit generation. Frequently, this hinges on divisional contributions. This analysis is usually more effective by looking at swings of divisional earnings in currency terms rather than in margin terms. This is why the first table is defaulted to this analytical dimension.
Debt These tables aim at providing more detailed information on debt financing. Useful debt information is only available for non financial stocks with a breakdown by maturity and profile. This helps provide liquidity measures. For Banks and Insurances, the link is with ad hoc Risks measures : Solvency and gearing for
Insurers; Tier 1 and liquidity for banks.
Valuation Peers
DCF
NAV/SOTP
Valuation processes have been organized around transparency and consistency as primary objectives. Stocks belong to different categories that recognize their main operating features: Banks, Insurers and Non Financials. Within those three universes, the valuation techniques are the same and in relation to the financial data available. The weighting given to individual valuation techniques is managed centrally and may be changed from time to time. As a rule, all stocks of a similar profile are valued using equivalent weighting of the various valuation techniques. This is for obvious consistency reasons.
Financials Find all of the company’s financial statements via over 250 quantitative results. With forecasts for the next three years. All of the figures published may contain notes and comments from the analyst.
Pension Risks Pension liabilities are an immense subject, with indeed arid accounting issues made worse by arid terms. For these reasons, they are understated. This is a mistake, as pension liabilities may account for more than10%
of shareholders' funds, sometimes wipe out the equity base altogether, are inescapable and, sadly, here to stay. AlphaMena offers a home-grown model to help investors find their way in a ridiculously complex field in accounting terms.
Governance
& Management
This section summarizes information about management and executive directors, and find out about the compensation paid to each member and their level of independence. By-laws are evaluated according to the respect of minority shareholders interests.
Worth Knowing Equity research does not limit its scope to hard facts. There are intuitions, links that can be made between situations, corporate or men, all sorts of information which when correctly assembled may generate useful additional understanding. This is the point of this section. It may be empty.
Graphics Tra-cea-bi-li-ty. For the first time users can see the analyst’s past recommendations and target prices in a
snapshot, providing a new kind of transparency. They can also use traditional technical tool (Momentum, Macd, Bollinger ...) . A pair trade module is also available to compare stocks and back testing ratios.
In Details
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6, RUE JAMELEDDINE EL AFGHANI
1002 TUNIS BELVEDERE - TUNISIE
TEL: + 216 71 788 870
www.alphamena.net
Sales : [email protected]